The World Bank reveals that Equatorial Guinea must diversify its economy away from oil to combat economic decline. A decline in oil revenues has led to prolonged recessions and decreased per capita income since 2008. The report outlines crucial steps needed for sustainable growth, which include investing in human capital, strengthening governance, and improving the business environment.
The World Bank emphasizes the necessity of economic diversification, investment in human capital, and institutional strengthening to avert economic decline in Equatorial Guinea. Its recent report indicates that the country’s heavy reliance on oil, combined with inadequate past diversification efforts, has led to a lengthy recession, undermining economic progress and social development.
After experiencing back-to-back recessions since 2015, Equatorial Guinea’s per capita income has diminished significantly, currently standing at less than half of its peak in 2008. To achieve sustainable and inclusive growth, there is an urgent need to focus on building human capital and enhancing institutional frameworks.
Aissatou Diallo, the World Bank Resident Representative, states that with the right policy actions, Equatorial Guinea can transform its economy and uplift the lives of its citizens. Currently, the hydrocarbon sector is vital, accounting for 39% of GDP and 76% of exports, yet it offers limited employment opportunities.
The report outlines strategic actions essential for reversing economic decline and fostering sustainable growth. These include improving fiscal management, transparency measures, stronger governance practices, investment in human capital, and enhancing the business climate to attract private investments.
Further, emphasis is placed on the need to boost digitalization, engage with international trade, and explore opportunities in eco-tourism to drive diversification. Djeneba Doumbia, the report’s lead author, highlights that significantly reducing reliance on oil and implementing substantial policy changes is crucial for resilient and inclusive economic growth.
In conclusion, the World Bank’s report underscores the urgent need for Equatorial Guinea to diversify its economy and invest in human capital and governance. Key actions include enhancing fiscal management, improving the business environment, and prioritizing social investment. With these strategies, the country could stimulate sustainable and inclusive growth, moving beyond its dependency on oil revenues.
Original Source: www.miragenews.com
